Q4 2019 Earnings Call
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I'd now like to hand, the conference over to your Speaker today, Mr., Patrick Briskly, Chief Financial Officer. Please go ahead Sir.
Thank you good afternoon, and welcome to Everbridge Its earnings conference call for the fourth quarter of 2019. This is Patrick Brinkley Senior Vice President and Chief Financial Officer of everybody with me on the call today, our Gimi Ellertson executive Chairman and David Meredith CEO.
After the market close today, we issued a press release with details regarding our fourth quarter and full year results, which can be accessed on the investor Relations section of our website at <unk> Dot Everbridge Dotcom. This call is being recorded replay will be available on our IR website. Following the conclusion of the call.
During today's call, we will make statements related to our business that maybe considered forward looking under federal securities laws.
These statements reflect our views only as of today and should not be considered representative I've ever use ads out any subsequent date, we disclaim any obligation to update any forward looking statements or outlook. These statements are subject to a variety of risks and uncertainties that could cause actual results could differ materially from expectations. These risks are summarized in the press release that we.
She today for a further discussion of the material risks and other important factors that could affect our actual results.
Please refer to our filings with the FTC, including our recent 10-K and 10-Q filings also during the course of today's call. We will refer to certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our press release.
Finally at times in our prepared comments or responses to your question. We may offer metrics that are incremental to our usual Pepsi to provide greater insight into the dynamics of our business for our quarterly results. Please be advised that we may or may not continue to provide this additional detail in the future.
With that let me turn the call over Jamie and David because their prepared remarks.
Thanks, Patrick and thanks, all of those joining our fourth quarter 2019.
[noise], we had an excellent fourth quarter was really strong performances across our business, resulting in our best year ever in 2019.
Growing demand for our core critical that management suite combined with the success across all of our key market segments and geographies, our strong validation of our strategy and our business overall.
The momentum we exited 2019 with sets our business up pretty even better performance in 2020.
Today I'll make a few summary comments on the business as well as the continued execution of our plan then I'll pass the call the David and Patrick for details on Q4, the full year performance smaller outlook for.
Twentytwenty.
The first our business mission is to keep people safe and business is running during the most critical and impactful events.
One such.
Critical then affecting millions of people thousands of businesses globally is the krona virus.
This virus has already take the lives of more than a thousand people surpass the impact of Sars virus in 2003.
Say, our hearts go out to all those affected.
We had everbridge are making every effort to help both public and private entities mitigate the impact of this large scale will then.
We've already supported hundreds of our customers across multiple countries, we're trying to mitigate the impact of the virus, including millions of communications to employees across the globe.
Three events such as this as well as other natural manmade disasters that occur on a regular basis C level executives and board of directors are concerned about precisely the type of issues that are critical that management. We're C. M sweet helps mitigate and safeguard against.
The case in front of Iris.
Organization seem to know who has been in an effect that area.
How do they avoid possible infection other organization.
How is he then impacting their supply chain.
And how can they plan to avoid business disruption and keep their employee populations safe.
Specific examples of our efforts include one of the largest public safety customers using everbridge to provide.
CDC guidance, two M.S. 911 centers to ensure proper procedures for tree arching the possible virus spread.
Our corporate customers are using our safety connection solution.
C M to determine the location of employees both physically located in <unk> as well as employees, who have or in the near future, maybe traveling to and infected area.
Leveraging our visual command centers krona virus speed to correlate their assets against the spread of the virus as well as our crisis management solution to evacuate employees were implemented safety procedures to protect people and operations.
Overall, we saw steadily growing demand for RCM throughout 2019 with a further spike in demand in Q4, enabling us to exceed all of our related key metrics.
Started the year with the objective of further penetrating the population alerting market, including National vacation I T learning and public warning as well as expansion overseas markets.
Launching new products to further differentiate and broaden our suites.
We ended the year, having over delivered in each of these areas, we broadened RCM suite with the introduction of our crisis management solution and have already seen strong demand and cross selling trends. Additionally, we closed the acquisition NC for which dramatically expanded our risk data offerings and help drive Q4 related revenues turn.
Record levels.
And of course, our core mass notification solution continues to lead the market.
On top of all this success, we want to continue to stress our belief that we're just getting started with our disruption of the physical security IP and Aiotv market places.
Our momentum sets us up to further penetrate these multibillion dollar market in 2020.
We expect to begin to roll out RCM outside of the corporate market in North America. This year.
And as we've described we've already seen poll for CTM into other markets like government as well as other geographies such as Asia.
In public warning, we enter 2020, having previously closed large state deals like California, as well as a number of recent countrywide deals in both Asia and the Americas.
Our leadership position population learning positions us well to support the European Nations, who will be evaluating their options to comply with the new you requirements in the coming years and of course, we expect to continue to penetrate the markets remastered indication I to learning and our broader suite.
Finally, we continue to grow our overall business.
As we successfully added hundreds of new employees in 2019, including the very important appointment of a new CEO.
I believe our Q4 in 2019 results illustrate the success of our senior executive transition.
In summary, we're very satisfied with the 2019 results and even more excited with the large opportunity in front of us in 2020 and beyond now ill pass the call over to David to provides details on Q4 and full year performance.
And the set the stage for how our momentum will help us continue to drive our growth as we look for that David.
Thank you Jamie.
I'm pleased by the strong performance that exceeded our guidance on both the top and bottom lines.
And I am impressed by our team's performance and achieving these results.
Our success in the marketplace reflects investments in our teams to broaden and further enhance our product portfolio to bring these products to market and to support our customer success around the world.
With tremendous momentum across our business, we're better positioned than ever to continue the success in 2020 and beyond.
As Jimmy indicated we exceeded our financial guidance for the fourth quarter, extending our track record for another quarter revenue was $57.1 million representing growth of 37% year over year.
This strong topline results combined with strong operational execution by our team produced profitability that also exceeded our guidance ranges with adjusted EBITDA coming in at $5.6 million for the quarter.
Our critical event management or cm strategy is leading the way for organizations looking to monitor and manage business disruption coordinate risk intelligence and execute mitigation and recovery plans in order for to protect their people assets customers and supply chains eliminate or circumvent.
Lastly, interruptions and to protect and improve brand reputations.
Rapidly growing demand for the adoption of CEO, Jim is helping us penetrate leading global organizations and governments drive higher average selling prices and grow our customer base.
At the same time, we continue to sell new products to existing customers, including IP alerting safety connection and public warning.
And growth some of these newer products continues to be complemented by further adoption of our core mass notification solution and what we believe remains an underpenetrated market.
Looking at our fourth quarter performance, our strength was evident in the key metrics that we track.
First we added 173 net new enterprise customers in Q4, which is above the high end of our historical range, though we continue to target approximately 125 net adds per quarter.
We ended the year, having crossed the 5000, Mark with 5024 enterprise customers.
As the inventor and leading CRM solution globally, we believe that our continued growth will be fuel not only by our addition of net new customers, but increasingly from across an upsell of this very large base of 5000, plus enterprise customers, 98% of whom have yet to adopt RCM suite.
During Q4, we signed 58 deals valued at over $100000 per year up 81% from a year ago. A record result, and includes the addition of multiple million dollar relationships to our customer roles.
We had an exceptional quarter for cm with a record 17, new CRM customers almost double our Q3 total including numerous industry leaders and several named accounts.
We ended the year was 76 cm customers more than doubled the 35, we had at the end of 2018.
Our strong cm and other large wins drove our average selling price over the last four quarters to $73000 in the fourth quarter up 9% from $67000 a year ago.
In addition to stellar cm activity, we closed 128 multiproduct deals in the fourth quarter up 38% from a year ago, which also contributed to our growth in ASP.
And we continue to see contributions to our growth from both newer products and our core products that continue to penetrate key markets with 50% of new in gross sales over the last four quarters coming from new products in Q4.
Our international business continued its recent success and represented 20% of our record Q4 revenue.
Our revenue mix by vertical remained relatively consistent in Q4 was 59% from corporate 29% from local state and countrywide government and 12% from healthcare as our growth remains broad based.
While these metrics all represent continued progress and driving our growth we want to remind you that these quarterly metrics can fluctuate, especially off a strong fourth quarter like this one but our optimism and confidence are clearly substantiated by these metrics.
For the full year, which reflects longer term trends our progress was equally impressive.
Total revenue grew 37% for all of 2000 $19 million to $200.9 million.
We added 41, new CRM customers in 2019 to more than double RCM customer count from a year ago to 76.
And we closed 139 deals worth more than $100000, a 34% increased from 104, such transactions a year ago.
This full year performance demonstrates the strong demand that we are seeing across our entire platform from CEO, Jim to newer product additions as well as our core mass notification.
Looking at the fourth quarter and a little more detail RCM business activity reached a crescendo at the year end with a record of 17 cm deals in the fourth quarter, almost 100% more than last quarter and more than 50% increase from the prior record for the number of cm deals in a quarter, including a new high watermark with a lot.
Just CEO Jim contract size in our history.
At our Investor meeting in June we outline how growth in the number of cm deals can help us more than double our size over the next few years. The record number of deals. We saw in Q4 illustrates our ability to drive that kind of growth.
Our fourth quarter cm deals include a number of industry leaders. These included one of the world's largest manufacturers, who will deploy the full cm suite as well as IP alerting across multiple areas of their business to contribute to their life safety and risk management efforts.
Including I.T. supply chain and business continuity.
We also closed C.M. deals with one of the world's largest theme park operators one of the largest American mass media conglomerates two of the 12 largest banks in the United States.
A multinational biopharmaceutical company with over $20 billion in revenue and more than 20000 employees and one of the faster growing fintech companies with more than 6 million users just to highlight a few of our Q4 cm wins.
While each of these 17, new C.M. deals.
Is exciting insignificant an important trend we're seeing is the growing adoption by the industry leaders across a range of industry verticals and these leaders are increasingly willing to be public in their selection of everbridge.
By publicly selecting the everbridge cm platform to help and fulfilling their duty of care, they're able to differentiate themselves to employees prospects and partners, while also generating better operational outcomes for investors supply chains customers and the market as a whole.
For example in the fourth quarter, we signed cm deals with category leaders, such as Goldman Sachs lows and the gap.
Goldman Sachs, one of the highest profile investment banks in the world.
Leverages everbridge to enhance their ability to manage operational risk business continuity and employee safety for their people in assets around the globe.
Flows a leading home improvement retailers in the United in the United States with over $70 billion in revenue and more than 300000 employees added to their everbridge commitment to also become a CRM customer in the fourth quarter and the gap the largest specialty retailer in America and one of the world's most recognized clothing Brad.
Funds also extended their relationship to complete their cm suite to enhance the company's operational resiliency.
These organizations will all be able to leverage the broad capabilities of cm to identify risks and better manage remediation efforts to protect people assets and brands through a single pane of glass.
Johnson controls a multinational leader for building technology with over $70 billion in revenue and more than 100000 employees expanded their relationship.
With the addition of visual command center and became a CRM customer through an expansion in the fourth quarter.
Other new and growth see him customers in the quarter included big data and analytics leader Teradata.
One of the top five banks in Canada, the bank of Montreal, leading financial services company discover financial leading utility district energy and communications leader Syniverse backed by leading private equity firm the Carlyle group.
Who will you see him to help in protect their global network, reaching billions of people and devices.
These deals are significant not only do each of the deals represent leaders in their respective vertical categories, but also because of the precedent that a set by them and other industry leaders, who are willing to be public about their CRM choice.
These organizations include anthem, one of the largest for profit managed healthcare companies Cvs Health Dal MGM resorts, Microsoft Nokia, Tiffany and Walgreens as well as S&P 500, global insurance brokerage AJ Gallagher and the leading storage technology companies seek.
Eight with 45000 employees. In addition to public entities like the U.S. Department of Labor and the New York Metropolitan Transit Authority, which is the largest transit authority in United States and the second largest in the world.
With a growing list of Blue chip organizations, who are publicly adopting cm, we're well positioned to solidify our position as the industry gold standard as other companies and those vertical markets look to the example set by these leaders when choosing a critical event management solution for themselves.
We also to consumers continue to see momentum with new products, including public warning IP alerting safety connection and other applications within the Everbridge platform.
For example in the fourth quarter, we signed a new countrywide win with Peru, who chose Everbridge public warning to power their early warning emergency messaging system and serve their 33 million residents and 4 million annual visitors.
Looking at some other marquee wins in the quarter AB Inbev, the world's largest brewer selected safety connection as did BP one of the largest global energy providers ranked fifth in the Forbes Global 2000.
Multinational mass media and entertainment giant Warner Media also expanded their everbridge suite by adding it alerting in the fourth quarter.
And of course momentum with our core mass notification remains as strong as ever with a growing number of transactions and larger deal sizes across all of our target markets as well for example, when one of the largest nonprofit health care systems in the U.S. decided to upgrade its legacy communication platform. They chose everbridge.
Our platform is being deployed to protect the organizations 9000 associates and 1300 physicians across more than 30 facilities.
Similarly, a fortune 100 multinational conglomerate chose everbridge mass notification to enhance the safety of their global workforce of over 100000 employees.
And in verticals like to federal marketplace, we saw growing and renewing six figure relationships like the U.S. census Bureau, and the US Army Corps of engineers.
From a more operational view, our NC for acquisition, which brings us enhance risks data and analytics capabilities has now been fully integrated into our risk center solution, helping to further differentiate cm and other products that Leverages center in the marketplace as well as further establishing everbridge as the de facto leader in the space.
Also important in establishing everbridge as an industry standard is our partner program, which includes solution partners, who helped deliver solutions for specific industries markets and processes.
Integration partners create two way communications with third party systems and Alliance Channel partners, who continue to drive key wins.
In addition, as Cmes physician solidifies us an important standard for resiliency with leading companies in governments around the globe. We're building out an integrated ecosystem of global solution providers to support these customers by aggregating over 20000 risk data elements within cm to better assess and monitor risk.
We are constantly expanding this set having recently added corona virus risk data for our customers.
RCM ecosystem is also expanding.
One of the world's leading risk consulting services organizations for more than four decades control risks.
Recently announced the formation of a specialized cm consulting practice to assist customers with expertise around the implementation and management of critical event management.
Control risks new cm practice will be powered by Everbridge technology and joint customer feedback has already been positive with for example, chemical diet giant dal, indicating that the alliance allows them to more rapidly assess risk and aligned teams unplanned actions in order to achieve crisis prevention.
Looking ahead to 2020, we expect a strong momentum we have in the market to fuel continued topline growth across all verticals geographies and product areas.
We have a healthy pipeline of new cm prospects and customer expansions and look forward to setting new records for cm in 2020.
In addition to continuing to focus on the North American corporate market, we will begin to rollout cm to our international Salesforce in 2020, as well as continue to push into the healthcare vertical supported by a recent tuck in acquisition in the Io T or internet of things space.
As we saw pull from these markets in 2019, Theres strong demand across our ecosystem for this highly differentiated technology and we look forward to beginning to explore these opportunities in 2020.
In the area of population alerting we have demonstrated our global leadership with countrywide deals as well as deals with US states that are larger than many countries. We are leveraging our thought leadership in the EU as member countries look to implement population warning systems to comply with the EU directive.
Third party organizations have also recognized Everbridge his leadership and population alerting the well respected European Emergency number association, commonly known as any has been running workshops in Europe to help them evaluate public warning systems.
A recent report by M&A recommended that country's operate behind a common user interface and workflow to use multiple channels in order to maximize reach geographic specificity in speed.
Of course this is precisely the approach we have taken around the world, including in Europe, where we have more countrywide deployments than anyone else in India, where our platform is protecting tens of millions of people and in North America, where we have been deployed more broadly than anyone else for many years.
And speaking of international markets I'd like to highlight a few of our global wins that are indicative of our continued success in Europe, and Asia, including a large multi product when in Europe, with a food and specialty manufacturer as well as a leading Spanish bake and in Asia, one of the largest global banks and a leading international professional services firm.
Just to name a few.
This segment of our business has been and historic growth engine and we believe the rollout of our full cm sweet into our international sales team and partner channels combined with the opening of new sales geographies in Europe, the Middle East and Asia mean that our international business will continue to drive meaningful growth for 2020 and beyond.
And also in 2020, well continue to penetrate the market with our corn mass notification and our newer products like IP alerting safety connection and visual Command Center will also cross selling these applications to existing customers as they upgrade and expand the relationships with everbridge.
Looking beyond our current capabilities, we continue to focus on extending our technology leadership for example in 2019.
We launched cm for supply chains, which became increasingly relevant with the current a virus outbreak.
Looking forward, we're extending our CRM capabilities across the internet of things or Io Ti as the number of biotech devices is expected to approach 75 billion by 2025.
Our latest technology acquisitions extend RCM platform to integrate monitor and manage the rapidly proliferating number of I O T sensors and devices in the corporate environment as well as support our international expansion.
When integrated our customers will be able to leverage our CRM capabilities to both safeguard I O T connected assets as well as to leverage vast amounts of data in real time from Aiotv enabled sensors across smart building and safe city initiatives.
All well curated increasingly complex risks data in a coordinated manner with a single pane of glass provided by our visual command center.
We will continue to leverage both organic development and tuck in technology acquisitions to add capabilities such as these as well as other new features that reinforce our competitive differentiation and enable us to further penetrate our multibillion dollar market opportunity.
In summary, the fourth quarter was a strong finish to our best year ever.
Cm in particular had a breakout year, reflecting a fast pace of adoption and reinforcing our position as the evolving industry standard.
Everbridge is better positioned than ever before to continue our track record of growth and success as we continue to distance ourselves from our competitors in the critical event management space.
Now, let me turn the call over to Patrick.
For more details on our fourth quarter financial performance and our guidance for Q1 and all of 2020 Patrick.
Thanks, David I will review, our financial highlights from the fourth quarter, and then provide guidance for the first quarter and the full year. We ended 2019 on a strong note with fourth quarter revenue growth of 37% above our expectation leading to a very robust year overall also with 37% growth.
Revenue in the fourth quarter was $57.1 million with strong execution. We were also able to deliver adjusted EBITDA for the quarter that exceeded our guidance at $5.6 million.
Maintaining high customer retention is the foundation of our growth and our dollar based net retention rate remains consistently above 110% as we continue to provide significant value to our existing customers. This is complemented by new customer additions and we saw a very healthy 173, net new enterprise customers in the quarter, who generate fees of two.
$100 per month or more we ended the year with over 5000 enterprise customers.
Looking at the details of our piano unless otherwise indicated I will be discussing income statement metrics on a non-GAAP basis.
Liaise with GAAP to non-GAAP measures has been provided in the earnings release, we issued earlier today.
Gross margin was 70.3% up 50 basis points from year ago as always keep in mind that gross margins may fluctuate from quarter to quarter and should not be considered indicative of any trends.
Total operating expenses in the quarter were $37 million, an increase of 21% from year ago, reflecting our ability to make investments that will enable us to continue generating strong topline growth. While also benefiting from scale to produce incremental margin leverage adjusted EBITDA was above guidance at $5.6 million compared to eight.
Hundred thousand dollars in the year ago period.
Income in the fourth quarter was $1.7 million or five cents per diluted share.
Above the high end of our guidance range and an improvement from our year ago net loss of $2.8 million or nine cents per basic and diluted share.
On a GAAP basis, our net loss was $13.1 million also better than our guidance range.
Looking at the year as a whole revenue from Q1 revenue of $200.9 million increased 37% from 2018 with larger deals higher ASP and more multi product sales, especially CPM contributing to this growth.
Gross margin for the year was 70.4% fairly consistent with 70.6% year ago.
Adjusted EBITDA for the year was $5.7 million compared to adjusted EBITDA loss of $2.7 million a year ago.
Turning to our balance sheet, we ended the year with $539.7 million cash cash equivalents restricted cash and short term investments compared to $199.1 million at the end of the third quarter, primarily due to the successful offering of convertible notes in December which provided net proceeds.
We $437 million.
Free cash flow was an outflow of $1.3 million in the fourth quarter and an outflow of $2.8 million for all of 2019, a notable improvement from an outflow of $6.9 million in 2018.
Total deferred revenue was $133.5 million at the ended the quarter, an increase of 40% from year ago.
Even when this metric is very strong we will note again that our deferred revenue balance at the end of any given quarter can vary due to a number of factors, including the timing of significant new contracts as such the change in deferred revenue on a quarterly basis is not always a meaningful indicator of the underlying.
And momentum in our business.
We believe its growth is directionally relevant on a longer term basis.
Now, let me turn to our outlook for first quarter and the year.
We ended a record year with a record fourth quarter and considerable momentum, which drives our optimism and confidence in 2020, we're particularly excited about our momentum with cm, our larger deal sizes, and our ability to balance growth from new customers and expansions at existing customers.
While top line growth remains our first priority, we continue to focus on improving profitability over the longer term.
While we don't guide to gross margin, we continue to expect improvement on a longer term basis.
During 2020, we will see a couple of opposing forces at play we expect to benefit from continued scale in our business, but believe that this will largely be offset by strong gross profit contribution at lower margin from prime contractor arrangements.
Combined with continued technology and go to market investments that will enable us to capture a large share of the opportunity ahead of us.
We expect to again make incremental improvement in adjusted EBITDA, and operating and free cash flow in 2020.
With that in mine for the full year, we expect revenue to be in the range of $260.3 million to $262.3 million representing growth of 30% to 31%.
We anticipate adjusted EBITDA to be in the range of $6 million to $7 million, we expect to non-GAAP net loss of between 26.5 and $25.5 million or between 70 775 cents per share based on 34.2 million basic and diluted weighted average shares outstanding.
This includes the impact of a large increase in noncash interest expense related to our convertible debt.
This guidance assumes estimated stock based compensation expenses of approximately $47.4 million for the year and we anticipate that free cash flow will be approximately breakeven to slightly positive for the year.
For the first quarter, we anticipate revenue of between 57.5 and $57.9 million representing growth of 34% to 35%.
We anticipate adjusted EBITDA to be a loss between 5.9 $5.5 million, we anticipate a non-GAAP net loss of between 13.3 and $12.9 million or loss of between 30 940 cents per share based on 34 million basic and diluted weighted average shares outstanding.
Stock based compensation expense is expected to be approximately $11 million fourth and first quarter.
In summary, we are pleased to have delivered a record quarter and year end to be entering 2020 better positioned than at any other time in our history. We are optimistic and confidence that we will be able to continue our track record of delivering high revenue growth, we gradually improving profitability and cash flow.
We further penetrate the multibillion dollar opportunity ahead of us.
Now operator, we'd like to open the call for questions.
As a reminder to ask a question you will need to press Star then one on your telephone keypad.
Withdraw your question press the pound.
Our first question comes from the lineup David Hynes with Canaccord. Your line is now open.
Hey, Thanks, very much congrats on the strong results.
Maybe we can start with CEO, obviously seats nice momentum there I think I think in the past you'd said.
Around half of your cm customers come from point solution users that upgrade you can you just talk generally about what the catalyst is to make that happen is it is an event driven is it just about sales persistence in the C. Ibs C suite and I guess, if it's the latter are you are focused on training your mass notification reps to sell more strategic or is it about bringing.
In new folks, who have experience selling higher and enter organization. So any color to help me understand kind of the cadence in strategy there will be helpful.
Yes, Hi, David This is David narrative. Thanks for the question. So it really is both sides and Jamie as talked for several quarters about would call our enterprise transition, which is transforming our salesforce and being able to sell higher up into the C suite into larger organizations and we continue to see.
Yes on that front, it's an ongoing journey, we're not at the end yet, but we are seeing improvements I think a love that showed up this quarter, we rolled out a new sales management process. So we have consistency on a global basis for that and I think we're doing a lot of things.
They are.
Represent best in class practices and processes.
In terms of being event driven Theres no question that when you turn on the news every day and you're seeing critical events showing on their it raises the awareness level and.
One I think organizations want to keep their people say, if they want to keep their businesses running faster consistent with our mission. So the other thing is as we get more and more integrated and more and more operational use cases, not only is at the right thing to do for taking care of their people. It is also a great return on investment for customers and I think they're seeing more and more of those examples and more and more of our.
Customers or.
Going out and publicly.
Allowing us to name them and we're doing press releases and they're being references for other customers. So it's really just becoming the standard I think it's going to get to the point, where if you're a fortune 500 company. You don't have SCM platform I think people are going to start to wonder why you're not prepared.
Yes that makes perfect sense and then maybe one follow up just for Patrick on the.
The guidance that the headwinds to gross margins as you kind of engage more strategic partners.
Are you thinking the gross margins take a step back a bit this year do we do we just see the margin improvement kind of stall out just any any framework for thinking about.
Kind of the expense structure and 20 Tony.
Sure. Thanks for the question, we think in terms of adjusted EBITDA and cash flow that we will continue to show continued gradual improvement there in terms of gross margins. We're excited that we're entering this public warning opportunity with the ability to sell the entire platform and that enables the opportunity for us.
To operate as the prime contractor and really own these opportunities from beginning to end as a result, there could be some compression on our gross margin.
I can think of it as more lets just kind of stalling out perhaps for little while there will be there some puts and takes though and time will tell we're not anticipating any sort of material.
You decline in them just just some just some headwinds.
Very good congrats on the results guys.
Thank you. Thank you.
Our next question comes from that Im sorry, with William Blair. Your line is now open.
Hi, guys. This is Matt Stotler off relaunched sorry, congratulations on a quarter.
Great quarter officers and strong results there, yes first wanted to maybe Levin another question on guidance.
We're in addition to the thoughts on gross margin here looks like we're also seeing some increased investment so.
Obviously, a lot of side of things going on with what's kind of breakdown.
On a dollar basis, where we are seeing those investments for look forward to 2020, and how that breaks out between sales and marketing research and development Gionee and then within those line items.
Fleet or some of the initiatives that you you have in mind.
Thanks for the question, Matt, Yes, so I'm GNS bye bye.
I don't get to continue to invest at the same rate of revenue growth, but we will continue to build out the platform. So you'll see that in R&D will continue to build.
Additive advantage, that's going to benefit us for the long term, we'll also see that in our adjusted gross margin our sales and marketing you heard David's talk a bit about that and we still have.
We're still continuing to roll out new programs, there and to build capacity for future years. So continued investment there zooming out we're really excited about the momentum that we're entering 2020 with and overall, we we do believe that we can continue to drive strong revenue growth while continuing.
To add to our adjusted EBITDA and increasingly to our operating and free cash flow.
Right right helpful. Okay.
Okay, and then maybe just one follow ups.
Looking at the partner strategy here, obviously, it's been a greater focus for you guys with six nine months.
The California, when we say toast as well as the recent announcement was control risks.
Get updated thoughts on the pipeline regarding your channel relationships.
What the market opportunity looks like through those channels versus your direct go to market and how significant the indirect channels could be in terms of contributor to revenue overtime.
Yeah. It's a great question, it's definitely an area of focus that we talked about it will take time to get to the full potential and what it can be what we're really looking to do is to add more routes to market. Historically, we've been predominantly focused on direct sales and the company has done an amazing job of driving really significant growth.
To that one route to market for the most part so now we are and in conjunction with our product strategy. Because we are integrated now with almost 100 other companies with our with our platform and that opens itself up to all different types of opportunities, whether its referral deals or OEM deals or other types of.
Partnerships like what we're doing control risk, which we're really excited about.
So we're already seeing some improvement in terms of deal flow coming through we don't think it's anywhere near where it will eventually be and as you said, we had the state of California, which was the largest contract in our company's history that we got through an ESI partner I think as you look at some of these big population morning deals around the world probably expect to see maybe some similar API.
Securities like that.
And then.
We're continuing to get progress on the OEM front.
And then again control risk is just a great partner, because we do software and they do consulting and their plug into most of the big brands around the world and having a.
I don't want to understate that from this earnings call a major global consultancy, that's been leading in this for 45 years has created a CE pro.
Practice consulting practice, that's the first time that's ever happened. So we're seeing the adoption of CGM as a standard with the highest reputation companies and that only helps us and what we're doing I think you're starting to see that with the results. We posted in terms of the number cm wins in Q4.
Got it thanks for taking my questions.
Sure.
Our next question comes from Terry Tillman with Suntrust Robinson Humphrey. Your line is now open.
Yes, Hi, Jamie David and Patrick can you hear me okay.
Yes began.
Sorry, Okay, Hey, I'll echo the congrats congrats on the strong sales in the quarter I guess, the first question and I don't know who this should be four bit.
So don't fight over it okay, but in terms of the Ed obviously the momentum in digital color the spike in the.
You asked and fourth quarter I'm curious, how we could see this monetized in international markets I mean, you've obviously got learnings in the US how quickly do you see this ramping in Europe. For example, because we know now the number of cm customers, you haven't U.S. and wait until some of the deal sizes I'd like to see how quickly this can be replicated immaterial and international Mark.
First question.
Well, we've said all along we plan we have not formally rolled out cm internationally, we're planning to roll it out to Europe. This year in 2020.
I can tell you we're already building funnel of customers that are very interested in it based on what they're seeing from the us and how weve.
Enabled our sales team internationally. So we're pretty excited about it will do a big launch and we think it's going to.
Probably accelerate the growth internationally and I don't think we're ready to put numbers to it but directionally, we're pretty excited about.
Okay, and maybe to follow Patrick could you give us a sense or update us on NC for I think you did give us a range for the expectation in 20 or if I'm not mistaken eight to 10 billion and then anything materiality wise in terms of the site with the acquisition. Thank you.
Yes, so for the iOS fees acquisition, that's a Q1 event and there is theres, that's a technology acquisition.
Currency for.
We believe that NP four helps us sell our risk intelligence offerings and any products.
And leverage it including cm and because it NP four is now fully integrated into risks center and it's not sold separately, it's impossible to attribute a revenue contribution from it alone. So I'd say zooming out we believe that we're providing guidance that's both realistic and prudent and we're entering the year with a lot of momentum.
And for Cm and otherwise.
Our next question comes from the line of Ryan Mcwilliams with Stephens. Your line is now open.
Hey, guys. Thanks for taking the question. So on that you directive, although going up and Cindy I know, it's still early in our seven come out yet, but have you seen an appetite for countries June to pursue a hybrid solution. So both sell broadcast location based SMS and then if not no are you prioritizing location.
Domestic rollover broadcast or interest trying to go after.
Yup.
Ryan This is David Thanks for that question very insightful to view I think.
Our perspective in our positioning is really a platform based approach where.
We believe there's benefits to being able to have a platform that can deliver location base SMS and sell broadcast and then there's other.
Well, we feel our proprietary capabilities, we can tie around that as well that only we can provide and thats. The message, we're taking to the marketplace and I think thats the message that.
Some of the thought leaders in the.
Our reflecting as well so.
We're we're excited about the opportunity to go and when those deals when they start to come obviously, we're dealing with.
Mandate to have it up by June of 2022, so realistically how soon we'll be finally get Arfaei RFP deals close implemented.
Revenue wise, you're probably talking more 2021, and 2020, but we are seeing activity, we're starting to see our advisory start having meetings and discussions and.
So we think we're very well positioned there and we are positioning around a platform approach that can deliver all those capabilities and we've actually.
Delivered hundreds of cell broadcast solutions in other parts of the World and if you look at what we're doing with some urgency implementations we've been the prime and delivered across both so we think we've got expertise on both.
Finally, with you a mass we've got the leading location based SMS solution as well.
Perfect and then.
Said repeatedly great quarter CMC side of those 5000 change enterprise customers today.
Do you have a sense of how many these can be a target for CN and also besides the corporate space, where you mentioned a lot of great. When it seems like Theres also been by state and local cm suite wins this year.
Could you maybe some color and how does opportunity could play out in 2020 pipeline now will be supported by recent wins like California.
Yes, so in terms of our installed base I think.
They are all candidates are up sell so remember we've got 10 software as a service products and on average our customers are only using two of them. So we'll continue to upsell as far as which ones.
Are likely to be cm customers. There's two ways to look at one is the larger customers are really good fit because.
They're managing across multiple countries and that sort of thing, but then on the flip side are smaller customers. They like to have things automated because they don't have as much staff. So it's really just a different segmentation strategy and how you approach them and how you package up the solution and we have different combinations of what we can sell and SCM bundle. So.
We think the right product for the right customer segment right channel right price.
So.
We're going to continue to develop that and we think thats going to be a really good source of growth on the cm side.
In terms of other areas for cm, I think youre going to see us talking more about cm for public safety, which is expanding into our government space remember were.
Fed ramp compliant and Thats a big deal every year, we have 325 certifications we have to go through.
And most of our competitors don't have that.
And that's a halo effect and we continue to add more states and more cities and towns and so we're getting really good momentum we had a good year on the state local side as well and we think all that can lend itself towards the end for public safety and then as as we alluded to earlier I think extending our.
And just some adjacent these around cm in the Iot space. When you think about we protect things that you care about your people your assets your customers supply chain brand well when you've got 75 billion devices that are connected you got a lot more assets, you've got to care about and you've got to protect that lends itself well to what we do and then the flip side is all of those.
Sensors, whether it's a safe city and you've got cameras all around different types of sensors the ability to.
Aggregating correlate all that data curated through eight through it and figure out where as a critical event.
At the end of the day minutes matter seconds matter with critical events and and we just get better and better if we can leverage for that so I think that's going to play well in the public sector as well as a private sector.
Appreciate the color NUCYNTA questions congrats on quarter Doug.
Thank you. Thank you.
Our next question comes from Scott Berg with Needham. Your line is now open.
Hi, Jamie dividend, Patrick Congrats on a good quarter.
I guess first question probably for you David you hired a new head of sales running in the year.
Back in September outside of the additional push from some of the partner strategy now that we're into the beginning of the new sales year are there any other kind of significant changes to salesforce that are important to note or is it more kind of fine tuning each week.
Well, Hey, Scott. Thanks for the question, Yes, Vernon Irvin has come in and really not a fantastic job I mean, he didnt get any ramp up time, but luckily seen the movie before and knows what he's doing.
And Im very happy with the results the numbers is posted last two quarters.
As far as there's a bunch of dials that were tuning as one of the things we've done as we've added a global center of excellence around solution, selling which I think is enabling us to accelerate the speed at which we can get new sales reps productive because they've got a centralized group that can help help them with best practices and help support them with because.
Summer opportunities. So we're pretty excited about that group.
As I mentioned earlier, we rolled out a whole new.
Standardized kind of best practices processes around.
Sales management and pipeline management and additional reports and.
There's a bunch of Vernon loves programs. So we've got a program around penetrating the rest of the fortune 1000 in the global 2000 and other things so.
These putting in place discipline and processing and how we how we drive to grow the numbers and I think we're happy with the results so far.
Got it helpful. And then from a follow up perspective, probably for Jamie I think you're still heavily involved in the.
Acquisition strategy of the company.
The company just raised a fair amount of cash do you change your views your perspective on maybe what those acquisitions looked like this year I gave the product Kevin you don't know if that changes either in size or scale or maybe looking at some customer type acquisitions.
Sure.
Well I think increasingly David Patrick make most of those decisions I've.
Still sit in that seat, but and hope to be giving that seat up pretty quickly here as we get into the the middle of 2020, but the cash raised we feel great about primary purposes were to retire our existing debt under the previous convert.
But we still look at the the strategic plan as targeting 30% to 35% growth on an annualized basis and that's comprised of organic growth plus a couple percentage points not much different than what we said historically three 7% from M&A and.
As David mentioned in his prepared remarks, we got we got a small.
Technology kind of people transaction done after the close the quarter, but in the Aiotv space. We continue to do things in that space to expand cm into the literally billions sensors that are out there.
Both in buildings and an entire cities.
And we'll probably continue that exact same strategy increasingly led by David and Patrick.
And.
Mildly by myself.
Our next question comes from Brian Peterson with Raymond James Your line is helping.
Hi, gentlemen, thanks for taking my question and congrats on the other really strong billings number. So just wanted to hit on the cm success.
Curious any change to sales cycles that you've seen orders, it's still too early days in in terms of that it is it really more about the breadth of opportunities into discussions that you're having with some of your larger potential customers.
Yes, Thanks, Brian I appreciate that it's a great question and one of the things we're trying to do and vernon's really pushing this is.
Raise our level and this is part of the enterprise transition that we've been doing for several quarters, but but getting to the starting in conversation with the C suite.
As opposed to working our way up so I will say there were a few deals there where we started a discussion with the CEO and from the start of the discussion to the closing the deal at all happened in the quarter and I think some of the sales folks said Wow that was really fast it no things could happen that fasten.
So yes, I think as we continue to move up into the season, we didn't even into the board of directors because you think about what keeps a board member CEO up at night.
A lot of it is critical events that I think we're seeing that in the news and again it raises the awareness in the fact that there is already made solution, which is best in class and proven and not only provides you that assurance, but also provides real return on investment around some of these operational use cases, we're doing more and more or with our customers. It's just very compelling to the C suite.
So thats, continuing enterprise sales transition and getting better at doing that in a systematic way and so I think there are opportunities to shorten the cycle, but for typical deal where were the way. We normally go about it I don't see a whole lot of change from what we've been doing.
Got it it's good to hear in Patrick maybe just one for you I know the asps have been going up pretty significantly I think they were up 9% year over year. This quarter any help on how to think about that metric maybe over the next few quarters. Thank you.
Sure Brian. Thank you, yes, we like the trend there we expect that that will continue when you assume out certainly any individual quarter.
It can bounce around a bit, but whether it's continuing to sell large deals and we did more in 2020 far more than 20 point in 2018 excuse me than we ever have.
Okay and or continuing to.
Train the team to be able to sell some of our more strategic products.
Sometimes or our single product deals.
They both contribute to our growth and so sometimes that mix will bounce around a little bit, but it should continue to be up into the right overall trend.
Understood. Thank you.
Our next question comes from Willpower with Baird. Your line is now open.
Okay. Thanks.
Yes, I guess being a couple of questions maybe first for David I guess you referenced some some of the initial RF wise that you maybe seeing you with respect to that population alerting.
Mandate a couple of years from now let me any early color as to what's you're seeing competitively any surprises on that front and are you able to get any real read on how are you might think about the size of that opportunity may be at referenced and somebody additional or existing deals you have.
On the cotton in that area.
And then.
Patrick maybe just quickly for you you talked about.
Contractors, having an impact on.
Modest impact on gross margins, how do you think about the lifetime value of those deals is same better as a lower sales cost offsets any other color there would be great.
Yes, Thanks will in terms of the.
Countrywide population morning deals.
It's.
It's still pretty early so to try and say what.
The deal size and dollar it just theres still sort of trying to scope out how they want to tackle the problem I think the good news is we've done a lot in terms of leaning in on thought leadership and I think our view of what the countries should be doing is generally getting adopted so we're excited about that and.
The one thing I'll say that keeps coming up again and again I think the people making decisions. The one thing is they don't want to make a mistake. They don't want to make the wrong choice and there's a lot of incentives around that and I think that positions us well because as the one public company in this space with a strong balance sheet and bench strength in the.
Years of experience and all references we have I think we're very well position to be the right choice, especially when you factor in our full platform approach to how we're going to solve this for people, where they have kind of flexibility to do either sell broadcast or location based or hybrid combination with additional IP wrapped around it I think it's a compelling message that being said.
It's still early days and we're dealing with countries and governments and telco. So that can sometimes take longer than we wanted to and so I think we have to continue to to play this out and in the coming quarters, and we'll get more insights as we go.
And we'll Patrick to answer the second part of your question.
We're excited about the opportunity that we hope that winning a country wide deal will afford us we're starting to see it in our existing wins, but when you think about network effects and you take what we did in Florida, where we didn't have much business. When we first one the statewide alerting deal in Florida and based on the Referenceability leased.
On the sharing of data within the Everbridge network, we've since rolled up over 200 contracts within the state of Florida, We're doing that in the state of New York, We got the state and the city. The Mtpa, we're working on hospitals transportation et cetera, now, we hope to do that in California, and we're taking it to countries. So.
When we look at the of the gross margin impact, which which we hope to be able to managed very successfully with the.
The countrywide alerting opportunities.
We think that as a much broader opportunity for us that will play out over time.
Okay. Thank you.
Yep.
Our next question comes from Tom Roderick with Stifel. Your line is now open.
Hi, gentlemen, thanks for taking my questions I'll Echo the sentiment on the nice finish to the year, Jamie let off the script with that discussion on Corona virus and I know, it's meant to be sort of.
An anecdote or what sort of.
What is sort of moment in time, but but as you've seen some of these incidents in the past in your in year leadership, and and David chime in here as well from your perspective, we curious how the conversations with customers of all do they accelerate in light of an event like this you've got a product in the marketplace that can serve an immediate need obviously.
This is a moment in time, but the how our customers reacting to that that product that's in the marketplace food Corona buyers itself actually be.
Analysts for four earlier at deal closings than you might expect can you just talked about that.
At this period in time and also historically, how you've seen very since then it's like this impact the sales environment.
Yes, I mean, we don't and David will chime in here because he is intimately involved with large customers that are signing up now and did obviously just sign up in a very strong Q4 for CN.
And across multiple verticals and in leadership position. So none of those companies we mentioned, whether it's a major theme part you know.
Manager, who run theme parks in the us in Asia, and Europe, or it's a major financial institution that has offices in every one of the country's thus far with a significant outbreak certainly in greater China or.
When the largest manufacturers world. They all have tens of thousands of people that are affected in real time, they are actually in China or in Singapore, where there is now an outbreak confirmed outbreak or other countries, where theres a spread of the virus and.
When you think of the impact to your company you first thing people right executives, who traveled there recently did they go through quarantine when they came back how do we track all the people. If you got a 100000 50000 200000 employees, how could you, possibly manage that without shutting down your business.
And that's the safety of executives now think of the rank and file people they happen to travel and they travel on a private basis, but come back to an office and then potentially contaminated officer shutdown of manufacturing plant because apple had been doing effected area without.
One thing to manage how your assets the people and things you care about are affected by the growing spreads daily spread of a virus.
Thats number one the issue is that it it spreads at four times the rate of flu.
Contagion. So it's this this rapid spread that concerns people not necessarily the death and as we said those are our hearts go out to those people.
And we think this is a serious issue no different than other manmade or natural disasters, but it is a great example, and that's the life safety portion of it now turn to those same companies I, just mentioned and think about their supply chain for that matter think of all 5000 of ours or the fortune 1000.
Take a wild guess at what percentage have manufacturing of some critical goods in China.
The vast majority without getting into the numbers that will.
The mind boggling, the vast majority so they're all affected everyone is going to be impacted by the virus in some way either because the goods that you expect out of production in a region are not coming as fast because factories are closed down or workers are going through as I heard in one recent case from a board member a four.
Our a day testing period every morning, so on an eight hour day, they're working less than 50% of the time, even when any factors turned back on just saw the news half an hour before walking in here Apple iPhone sales reported to be down 2%, that's a big number directly attributable to Corona virus.
So whether its people.
In the spread of.
Critical that like this or your business disruption the supply chain. This is a kind of a poster child for what can happen and white board of directors sea level officers need to have such a product and I think Q4 is a small example, but.
The opportunity to supply and provide people with a solution that can identify the risk help them communicate how to face save for keep the business running and mitigate the risk and then in the end follow up.
Processes and procedures and protect the brand is a enormous opportunity for CN, but I'll, let David just because that is a a big automatic in the news today.
I'll, let David talked about this too.
Yes, thanks, Jamie.
Our mission is to keep people save and keep businesses running. So this is when we activate we have made some operational changes. So we've actually foreign movie call rapid response team process. So when there is a major critical event in any part of the world, whether it's a site clone and ODESZA or hurricane in Florida, or Corona virus outbreak.
We mobilized the team and we are reaching out to our customers see how can we help how can we engage with you to do better. So if you look at Hurricane Dorian.
We did something like 15 million communications and matter of days and we were taking our risk center, which is partially powered by and C. And we're lighting up a lot of customers and basically giving them access to that during the hurricane and what's happening while those customers came back and said Hey, we really like that we want to sign up for that data.
Resin and connect we were asked by the state if we could add millions more people to the contact list and we have a product for that call resin connect it was a half a million dollars recurring revenue deal that we got done.
The week of the Hurricane and they were delighted we could turn it on for them within a matter of a couple of days.
So it's it's a win win and we're being responsive I think on the current virus Patrick talked about everything Jamie said I agree wholeheartedly and having a CPM supply chain solution that we launched this year was very timely given the current of Iris.
But Patrick talked about network effects and when we look at our network of customers. It's just there's a lot of activity and we've already done millions of communications across our customer specifically related to current virus and there's a lot of activity we are doing regular.
Webinars and information updates and we've had something like Fivex the normal amount of executives attending those than what we would normally do for other types of critical event. So.
We've never seen since I've been here not that long less than a year abode never seen the level of interest across all categories of our customers as what we're seeing with this and Theres a lot of things. We did a press release recently, we've launched a whole new data feeds specifically related to current virus, Jamie mentioned, how dynamic it is how rapidly as moving so helping our customers better have situations.
Awareness as to where whereas the virus spreading and where there are people on assets and and how can they respond so.
This is what we're here to do this is why we exist and so we take it seriously and and we're definitely busy working on right now.
Really get that Thats very helpful. Thank you Patrick really quick one for you I know you don't guide to it.
Are you kind of steer us away from it but wondering if you can help us think directionally about how you might see.
How we might want to.
Shape the model of our deferred revenues for the year a couple years ago. It was down sequentially. A few percentage. The first quarter last year was so creates a little bit of a tricky compare for the first quarter any thoughts on how you might suggest we we model out the shape of deferred this year or any thoughts relative to one time lumpy.
That's in the fourth quarter, good bad or otherwise that we should think about going into Q1.
Thanks, Tom.
We don't guide to that but I will I will say, we had a really strong Q4 as you can see like any Q4, sometimes we're able to pull a couple of things and we're able to do that and like every Q1 will experience in seasonality. So I would say.
You, probably see pattern similar to what you've seen in the past no no huge surprises there.
Maybe a quick reference there to the public warning deals I'd say that those arent necessarily going to drive those metrics.
In the immediate future so.
Expect more of the same.
Excellent okay. Thank you.
Thank you.
Our next question comes from Sterling Auty with Jpmorgan. Your line is now open.
Yes, Thanks, guys I apologize if this is going to press release.
Just wondering give some highlights to the large deals, but when you look across the totality of it what is the average deal size look like in how has that been trending.
Okay.
Okay.
Hey, Sterling, it's Patrick So we don't.
We don't provide that very precisely what we've spoken about in the past is that the all in spend of cm customers is.
As ranging anywhere from.
300000 to over 1 million in half and now frankly, we can talk about even larger number as result of Q4 over $2 million. So we're excited about that and the continued momentum there.
Alright, great had one follow up on the key opportunity.
What's kind of the secret sauce, or where you feel that you have the biggest opportunity to win because that's a space that obviously between pager duty and number of other vendors, there's more competitors with a packaged solution that perhaps what you've seen in some of your other.
Legacy for example, so what's going to be the.
The approach to win business and that in that space.
Yes. This is another area. This is David Thanks Sterling. This is another area, where we feel like we're getting pulled in and one of the trends that we're seeing over and over again and meeting some of the competitors, including the ones you're talking about is.
Vendor consolidation so when you look at our platform.
Customers are finding they can replace three or four or five vendors with our platform. So they want us to do more and more and more so.
We and again, if you go back to what we do a cm and with our risk center with the data.
First thing you want to know as all the risk data that's out there we have over 20000 data verified data elements and it's growing every month, because we're always adding more to it. So of course, you want to have all the data coming from other sensors coming and it just makes sense and this is this is the strength of our strategy around the single pane of glass, So visual command center.
We really own the real estate in terms of the interface that people look at to get all their data. So if there is something that comes in as well. We've got this really nice little Aiotv module with some data what our customers are saying to them as do us a favor call everbridge and plug into their modern architecture. So we can get that data on our single pane of glass.
Call Visual command center. So we think we position ourselves very well to the kind of Superset. These different point solution providers that you're talking about and I think we're getting good traction on that strategy in the marketplace.
And then other than the flip side is yes, that's that's the data that sure and the flip side of it is we're seeing more and more use cases around smart buildings save cities that play very well to critical about management in terms of how we.
Yes, automate digitize. The response and then managed BNN process. So thats just feels like a good fit in terms of additional use cases, leveraging the platform that we have.
Understood. Thank you so much.
Sure. Thank you.
Our next question comes from Brad Zelnick with Credit Suisse. Your line is now open.
Hi, its five an entre Brad congrats on the strong into the year guys, especially the momentum in the business, especially with C., but if I look at your revenue guidance. It seems like you're guiding below the 30% Mark organically, which would be below the commentary that Jamie spoke about earlier for sustainable 70% growth with M&A. In addition to that are there any onetime.
Is that we should be thinking about or just timing of revenue recognition that are impacting fiscal 2000.
Thanks, Bob.
So when you look at the second half of Q4, and what we said to expect from and before and you just for that you'll see that we've had strong organic growth and as I said earlier as we head into 2020, we've really integrated NP four and risks center into our entire product offering and so it's difficult to break.
That out we've merged our sales forces and Weve.
As we exited Q4, we were achieving double the rate of sales that that company brought in so we're we're excited about the momentum.
Looking at 2020 overall, we're providing what we believe.
With.
30% plus growth for the year, what we believed to be realistic and prudent as we sit here today and time will tell whether we can outperform that.
That's helpful. I was just wanted to follow up on that I know this Jerry I think you had a few on premise deals which helped out I don't know.
That kind of anniversary becomes a headwind into 2020.
No there wasn't.
Activity like that that was material enough to create a headwind our guidance certainly anticipate having to lap any.
Good afternoon, its onetime revenue events and we're excited about the organic growth will continue to look at ways to expand the platform by.
Building buying partnering technology and geographic expansion so.
We will continue.
More of the same as you've seen historically and that's driving both.
Revenue growth of north of 30% as well as continued improvement on the bottom line, whether its adjusted EBITDA or increasingly operating and free cash flow.
Very helpful. Congrats on the momentum.
Thank you.
I'm showing no further questions in queue at this time I'd like to turn the call back to David Meritas for closing remarks.
I'd like to thank you all for joining the call today Everbridge had a remarkable fourth quarter capping our best year ever with strength across the board and particularly notable momentum with CEO.
We believe we're better positioned than ever to extend our competitive lead further penetrate the opportunity ahead of us and continue delivering strong growth.
We look forward to seeing you at upcoming events, including our Investor meeting, which we're going to have in New York on March 20, Threerd and we'll have details coming out about that soon thank you again and goodbye.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.
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